EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.42% against the USD and closed at 1.1000.
On the data front, the final Markit services PMI fell to a level of 52.5 in January, less than market expectations for a fall to a level of 52.2 and compared to 52.8 in the previous month. The preliminary figures had recorded a fall to a level of 52.2. Meanwhile, the seasonally adjusted retail sales fell 1.6% on a monthly basis in December, compared to a revised rise of 0.8% in the previous month. Separately, in Germany, the final Markit services PMI rose to a level of 54.2 in January, following a reading of 52.9 in the previous month. The preliminary figures had also recorded a rise of 54.2.
The US dollar rose against a basket of currencies, following upbeat US economic data.
Data showed that the US final Markit services PMI rose to a level of 53.4 in January, compared to 52.8 in the earlier month. The preliminary figures had recorded a rise to 53.2. Additionally, the ISM non-manufacturing PMI advanced to a level of 55.5 in January, more than market anticipations for a rise to a level of 55.0. In the previous month, the non-manufacturing PMI had registered a revised level of 54.9. Further, the MBA mortgage applications climbed 5.0% on a weekly basis in the week ended 31 January 2020, compared to a rise of 7.2% in the prior week.
Moreover, the ADP private sector employment climbed by 291.00K in January, more than market expectations and compared to a revised reading of 199.00K in the prior month. On the flipside, trade deficit widened to $48.9 billion in December, amid surge in imports and compared to a revised deficit of $43.7 billion in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.0997, with the EUR trading slightly lower against the USD from yesterday’s close.
The pair is expected to find support at 1.0978, and a fall through could take it to the next support level of 1.0959. The pair is expected to find its first resistance at 1.1032, and a rise through could take it to the next resistance level of 1.1067.
In absence of key macroeconomic releases in the Euro-zone today, investors would focus on Germany’s factory orders for December, slated to release in a few hours. Later in the day, the US initial jobless claims will also be eyed by traders.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
